At-Will Employment
Kentucky law follows the employment-at-will doctrine, meaning an employment contract for an indefinite period may be terminated at any time by either the employer or the employee. Under this doctrine, an employer may discharge an at-will employee for good cause, no cause, or even a cause that might be considered morally indefensible.
However, there are judicial exceptions, a wrongful discharge claim may succeed when the termination: (1) is expressly prohibited by legislation; (2) results from an employee’s refusal to commit an unlawful act; or (3) is in retaliation for the employee exercising a legal right. It’s important to note that there must be an employment-related connection to the public policy for the exception to apply.
Implied contracts can also form the basis for employment protections in Kentucky, but only if the agreement is express and in writing. This may include language in an employee handbook if it explicitly outlines the intent to override the at-will nature of employment. To avoid the creation of implied contracts, employers are advised to include disclaimers in their handbooks and have employees sign an acknowledgment of at-will status.
For comprehensive training on maintaining at-will employment, visit EmployerESource and explore our training webinars. These resources offer valuable information for business owners and managers seeking to stay informed and compliant.
For any questions about at-will employment and how to preserve this relationship, please contact EmployerESource. We’re here to provide expert guidance and support.
Break/Meal Period
Under Kentucky law, employees are entitled to a reasonable meal period during their work shift. While the law does not specify an exact duration for this meal break, it does provide general timing requirements: the meal break may not be scheduled before the third hour of work or after the fifth hour. The break should be scheduled as close to the middle of the employee’s shift as possible. This meal period does not need to be paid, provided the employee is completely relieved of all duties during the break. Employees are not considered relieved if they are required to perform any duties—active or inactive—while eating. It is also not necessary for the employee to leave the premises, so long as they are fully relieved of duties.
Rest periods, on the other hand, are also required by Kentucky law. Employees must be given a paid 10-minute rest break for every four hours worked. These rest breaks are in addition to the unpaid meal break. Breaks of short duration, typically lasting from five to twenty minutes, are considered to promote employee efficiency and are compensable as working time. These rest periods cannot be offset against other work periods such as compensable waiting time or on-call time.
According to the Kentucky Division of Employment Standards Regulations, bona fide meal periods are not considered work time, unlike coffee breaks or snack time, which are categorized as rest periods and must be counted as hours worked. Generally, a thirty-minute break is considered sufficient for a meal, though shorter periods may be acceptable under special circumstances if the employee is fully relieved of duties.
EmployerESource makes compliance easy with our comprehensive Employee Handbook, which includes clear policies on meal and rest breaks, ensuring your business meets legal requirements. Stay compliant and protect your company—Download your Employee Handbook today!
Deductions from Wages
Under Kentucky law, employers cannot withhold any part of an employee’s agreed-upon wages. However, there are exceptions. Employers are allowed to withhold wages when authorized by local, state, or federal law or if the employee has expressly authorized in writing certain deductions, such as for insurance premiums, hospital dues, or similar deductions that do not reduce the employee’s agreed wage.
Furthermore, employers are prohibited from deducting the following from wages:
Fines
Cash shortages in a shared till, register, or box
Breakage
Losses from dishonored checks if the employee had the discretion to accept or reject them
Losses due to defective work, lost or stolen property, customer nonpayment, or damages unless the loss was due to the employee’s intentional or willful disregard of the employer’s interests.
To ensure compliance and avoid costly legal issues, EmployerESource offers a comprehensive Employee Handbook outlining these policies and a payroll deduction authorization form to properly document employee-approved deductions. Stay compliant and safeguard your business—get your Employee Handbook today!
Final Wages
In Kentucky, when an employee either resigns or is discharged from employment, the employer is required to pay all wages or salary earned by that employee in full. This final payment must be made no later than the next regular payday following the employee’s dismissal or voluntary departure, or within fourteen (14) days of the dismissal or departure—whichever is later.
If the employee is absent at the time payment is normally made, or if the employee is not paid at that time for any reason, the wages must still be paid as soon as possible, and no later than fourteen (14) days after the employee demands payment.
Avoid costly disputes and ensure compliance with ease—EmployerESource’s Employee Handbook provides clear policies on wage payments, terminations, and labor disputes to help safeguard your business. Order your Employee Handbook today!
Garnishments of Pay
Kentucky garnishments of pay applies to child support, medical support, maintenance, and medical support insurance orders established, modified, or enforced by the Cabinet for Health and Family Services or through court orders.
The employer is allowed to deduct a $1 fee for each payment processed under the order.
Overtime
In Kentucky if an employer permits an employee to work seven days in a workweek, the employer must pay the employee time and a half (1.5 times their regular wage) for the hours worked on the seventh day.
A "workweek" is defined as a calendar week or any seven consecutive days adopted by the employer with the intent to be permanent (without trying to avoid overtime rules).
Exceptions to the Seventh Day Rule:
o This rule does not apply if the employee works 40 hours or fewer in the workweek.
o If the employee works more than 40 hours, the employer can credit overtime pay from the seventh day of work against regular overtime pay due for the week.
Certain employees, such as officers, superintendents, foremen, or supervisors, who mainly direct or supervise other employees, may not be subject to this rule.
Vacation
In Kentucky, employers are not required to provide employees with vacation benefits, either paid or unpaid. However, if an employer does choose to provide such benefits, they must comply with the terms of the established policy.
Employers may lawfully establish policies that deny employees payment for accrued vacation leave upon separation from employment. Additionally, employers can set specific requirements, such as requiring employees to give two weeks' notice or be employed as of a specific date, to disqualify employees from receiving payment for accrued vacation leave upon separation.
On the other hand, if an employer’s policy requires the payment of accrued vacation leave upon separation from employment, the employer must adhere to that provision.
Employers also have the right to cap the amount of vacation leave an employee can accrue over time. Furthermore, they may implement a "use-it-or-lose-it" policy, which requires employees to use their vacation leave by a certain date or forfeit it.
EmployerESource specializes in developing customized vacation and leave policies tailored to your business needs. Let us help you create policies that align with your goals while ensuring compliance and clarity for your employees.
Contact us today to get started!
Voting Leave
Employees are entitled to take reasonable time off, not less than four hours, during normal business hours to either request or execute an absentee ballot or to vote in person on the day of the election. Employers are allowed to specify the hours during which the employee may be absent to vote, but the time must be sufficient to allow the employee to cast their ballot.
Employees cannot be penalized for taking time off to vote. However, if an employee fails to vote when they were able to do so, the employer may impose disciplinary action. This ensures that employees are provided with the necessary time to vote without fear of penalties, as long as they do not fail to vote without a valid reason.
To ensure compliance and avoid misunderstandings, it’s crucial to have a clear, written voting leave policy. EmployerESource offers a comprehensive Employee Handbook that includes this policy and more, ensuring your workplace remains compliant with election-related leave requirements.
Get your Employee Handbook today to safeguard your business and employees, and foster a supportive and legally compliant environment!